Various efforts which involve innovation and technology have been emphasized by organizations involved in oil palm cultivation. These efforts are aimed towards ensuring the well-being of small-scale or smallholder oil palm farmers, especially in cultivation techniques and crop production. Therefore, this study aims to identify the extent to which the smallholders respond towards the various innovation and technology introduced by the relevant agencies. According to the data obtained from the agencies, the productivity targets per hectar in the study area have not been met. A total of 300 smallholders in the study area of Lahad Datu, Semporna and Tawau, Sabah were interviewed using questionnaires to understand the barriers to innovation and technology among them. The data were analyzed descriptively to understand the constraints on the use of innovation and technology in oil palm cultivation. The majority of the smallholders explained that the constraints are attributable to several factors such as land ownership, access to credit, access to output and input markets, resources and non-resources constraints. This ultimately creates an interaction gap between the organization and smallholder oil palm farmers thus encourages them to rely on middlemen. The agency and smallholders should work together to improve the gap through organizing innovation and technology related programs for the small-scale farmers.